If your application needs to encrypt / decrypt data (for various reasons), are there any reasons why you should use a hardware device (for example, a USB encryption device - for example, Marx CryptoBox) instead of using a software encryption library (for example .net Cryptography or write your own) and save the keys in a secure key store?
I am looking for some objective views on this.
To narrow down the question: what would your opinion be if a system using the usb encrpytion key was placed in a physically secure server store and there was only one system (i.e., it is not a software product that is distributed and works on many desktop computers)? In a very simplified form, the goal of the aforementioned system is to verify (decrypt and compare) a portion of the incoming encrypted data.
Thanks for your wonderful answers!
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